Question 1

The Sale of Goods Act makes it possible for a seller to exempt itself from the implied conditions by making the exclusions express terms of the contract.

Accepted Answer

A) True 
 B)False

Question 2

John purchases a 2009 Pontiac automobile from Car Dealers Inc.Within three weeks,the car's transmission fails to work.Assuming that the car was not warranted against such an event,under the Sale of Goods Act,the failure of the transmission would amount to a breach of the implied condition of

Accepted Answer

A) description. 
B) merchantable quality. 
C) seller's title. 
D) fitness for purpose. 
E) none of the above 
A) description. 
B) merchantable quality. 
C) seller's title. 
D) fitness for purpose. 
E) none of the above

Question 3

The implied conditions in the Sale of Goods Act apply to any and all sales of goods.

Accepted Answer

A) True 
 B)False

Question 4

Samuel incorporated a company federally in order to sell fire prevention equipment to consumers across Canada.His lawyers have told him that he can use the same standard form contract across the entire country.However,because each of the provinces have different legislation with respect to consumer contracts,some terms may be valid and enforceable in some provinces and yet void and unenforceable in others.In order to employ the use of a single standard form contract while at the same time protecting his interests,Samuel should

Accepted Answer

A) include a term in the contract that states that any term deemed to be illegal,void or unenforceable may be severed or cut out of the contract leaving the balance of the contract to be in force. 
B) draft separate standard form contracts for each province taking into account the different legislation in force. 
C) employ the use of oral contracts with consumers which are at common law equally as enforceable as written contracts. 
D) forget the idea of selling his product to all Canadians and focus on one particular province. 
E) ensure that the standard form contract has an airtight exemption clause. 
A) include a term in the contract that states that any term deemed to be illegal,void or unenforceable may be severed or cut out of the contract leaving the balance of the contract to be in force. 
B) draft separate standard form contracts for each province taking into account the different legislation in force. 
C) employ the use of oral contracts with consumers which are at common law equally as enforceable as written contracts. 
D) forget the idea of selling his product to all Canadians and focus on one particular province. 
E) ensure that the standard form contract has an airtight exemption clause.

Question 5

A,a thief,steals 100 stereo amplifiers from B's warehouse and takes them to a flea market,where he sets up a stand that makes it appear that his business is selling stereo equipment.B finds out that A has sold an amplifier to C,an amplifier dealer.In this case,under the Ontario Sale of Goods Act

Accepted Answer

A) B can retake possession of the amplifier from C only if A accompanies him. 
B) the title to the amplifier has passed to C,against whom B has no recourse. 
C) B's only recourse is against C. 
D) B can retake possession of the amplifier from C. 
E) B has no recourse against A or C. 
A) B can retake possession of the amplifier from C only if A accompanies him. 
B) the title to the amplifier has passed to C,against whom B has no recourse. 
C) B's only recourse is against C. 
D) B can retake possession of the amplifier from C. 
E) B has no recourse against A or C.

Question 6

Philip agrees to sell his 1972 Corvette to Phyllis for $25 000.Phyllis agrees to make a down payment of $12 500 immediately and to pay the remaining $12 500 within 30 days.After making the down payment,Phyllis encounters serious financial difficulties and is unable to come up with the balance of the contract price.She advises Philip that she will be unable to close the deal and asks for her down payment back.Philip refuses,claiming that the monies previously paid are to be forfeited if she does not perform her remaining obligations under the contract.What are Phyllis's chances of success in a lawsuit to recover the $12 500?

Accepted Answer

It is important to distinguish between a

Question 7

Legislation governing consumer contracts does not ban the use of standard form contracts.Rather,it controls the use of standard form contracts employing various techniques including all of the following EXCEPT

Accepted Answer

A) controls the use of pressure sales tactics. 
B) requires notice and disclosure of onerous terms. 
C) gives the consumer a statutory right to claim triple damages,i.e.three times the actual loss. 
D) provides the consumer with a chance to "back out" once they have had time to consider onerous terms. 
E) inserts terms into the contract. 
A) controls the use of pressure sales tactics. 
B) requires notice and disclosure of onerous terms. 
C) gives the consumer a statutory right to claim triple damages,i.e.three times the actual loss. 
D) provides the consumer with a chance to "back out" once they have had time to consider onerous terms. 
E) inserts terms into the contract.

Question 8

Paper Products Ltd.sold paper to Lillian to use in brochures she was producing for a client.Before making the contract,Paper Products Ltd.showed Lillian a sample of the paper it was going to sell her,and Lillian approved of the choice.The paper provided to Lillian matched the sample she had been shown.One month after she bought the paper,Lillian found that it had yellowed and that it was useless for the brochures.Paper Products Ltd.is not liable to Lillian for breach of an implied term under the Sale of Goods Act because Lillian approved a sample of the paper she bought.

Accepted Answer

A) True 
 B)False

Question 9

What type of a sale of goods is subject to an implied condition that the goods shall be of merchantable quality,and under what circumstances is that implied condition avoided by the seller?

Accepted Answer

Where goods are bought by description (e

Question 10

Jones Ltd.places an order with Playgoods Ltd.for 100 children's playhouses.The contract provides that Playgoods Ltd.will pack the playhouses in boxes carrying the Jones Ltd.name and its "J" logo,which Jones Ltd.will supply.Jones Ltd.supplies the boxes,but before Playgoods Ltd.has had an opportunity to pack the playhouses into the boxes,the playhouses are destroyed by a fire in its warehouse.In this case

Accepted Answer

A) title had not yet passed to Jones Ltd.because Playgoods Ltd.failed to notify Jones Ltd.that the playhouses had not been packed in the appropriate boxes. 
B) title to the playhouses passed to Jones Ltd.at the time Jones Ltd.supplied the boxes. 
C) title to the playhouses would have passed to Jones Ltd.when Playgoods Ltd.packed the playhouses in the appropriate boxes. 
D) title to the playhouses did not yet pass to Jones Ltd.because Playgoods Ltd.failed to set the playhouses aside. 
E) title to the playhouses passed to Jones Ltd.at the time of the contract. 
A) title had not yet passed to Jones Ltd.because Playgoods Ltd.failed to notify Jones Ltd.that the playhouses had not been packed in the appropriate boxes. 
B) title to the playhouses passed to Jones Ltd.at the time Jones Ltd.supplied the boxes. 
C) title to the playhouses would have passed to Jones Ltd.when Playgoods Ltd.packed the playhouses in the appropriate boxes. 
D) title to the playhouses did not yet pass to Jones Ltd.because Playgoods Ltd.failed to set the playhouses aside. 
E) title to the playhouses passed to Jones Ltd.at the time of the contract.

Question 11

Henry stops at a yard sale to look for old musical equipment.He sees an amplifier that is exactly what he has been looking for.Henry believes it is worth a lot more money than the $50 the owner is requesting.Henry asks the owner whether or not the amplifier is in good working condition.The owner tells him that he knows nothing about the amplifier and is not prepared to comment further.Henry purchases the amplifier for $50.Later he finds out that it is stolen from a nearby music store and did not belong to the seller at the time he purchased it.Henry's action for recovery of his money against the seller will

Accepted Answer

A) succeed because the owner breached an implied term as to title. 
B) succeed because the music store will likely pay him a reward. 
C) fail because of the principle of caveat emptor. 
D) fail because the owner made no representations about the amplifier. 
E) none of the above 
A) succeed because the owner breached an implied term as to title. 
B) succeed because the music store will likely pay him a reward. 
C) fail because of the principle of caveat emptor. 
D) fail because the owner made no representations about the amplifier. 
E) none of the above

Question 12

When a buyer relies on a catalogue and a sample in placing an order,the Sale of Goods Act implies

Accepted Answer

A) warranty of suitability. 
B) condition of fitness. 
C) condition of merchantability. 
D) condition that the goods will correspond with the description. 
E) warranty of fitness. 
A) warranty of suitability. 
B) condition of fitness. 
C) condition of merchantability. 
D) condition that the goods will correspond with the description. 
E) warranty of fitness.

Question 13

A sanction intended to compel acceptance upon delivery of goods is called a

Accepted Answer

A) injunction. 
B) guarantee. 
C) deposit. 
D) partial payment. 
E) lien. 
A) injunction. 
B) guarantee. 
C) deposit. 
D) partial payment. 
E) lien.

Question 14

Describe four common law remedies a buyer may have against a seller of goods.

Accepted Answer

Four common law remedies of a buyer incl

Question 15

"The sole warranty between the seller and buyer is the warranty set out in this contract." This written statement is an example of

Accepted Answer

A) a statement of suitability. 
B) a condition of fitness. 
C) a bill of lading. 
D) a condition of merchantability. 
E) an exemption or disclaimer clause. 
A) a statement of suitability. 
B) a condition of fitness. 
C) a bill of lading. 
D) a condition of merchantability. 
E) an exemption or disclaimer clause.

Question 16

Tom has an above ground swimming pool.The pool temperature average is 18 degrees Celsius even though there is a great deal of sunlight cast on the pool during the day.Tom attends at Gray's Pool & Accessories to see what he can do about raising the pool temperature without incurring the costs of purchasing a heater.It is suggested to him by a salesperson that he buy the latest version of a "Let the Heat Begin" pool cover which uses rays of light from the sun to heat the pool.Tom agrees and purchases the cover.In the circumstances,which of the following is TRUE

Accepted Answer

A) there is an implied term that the cover is suitable for the purpose for which it has been bought. 
B) there is no implied term of merchantable quality. 
C) there is an implied term as to description. 
D) there is an implied term that goods correspond with the sample. 
E) there is no implied term as to title. 
A) there is an implied term that the cover is suitable for the purpose for which it has been bought. 
B) there is no implied term of merchantable quality. 
C) there is an implied term as to description. 
D) there is an implied term that goods correspond with the sample. 
E) there is no implied term as to title.

Question 17

Which of the following is NOT a remedy of the buyer?

Accepted Answer

A) action for the price 
B) sue for breach of contract 
C) sue for damages in tort 
D) rescission of contract 
E) specific performance 
A) action for the price 
B) sue for breach of contract 
C) sue for damages in tort 
D) rescission of contract 
E) specific performance

Question 18

Discuss the difference between title to goods,ownership,and possession of goods,using a consignment agreement to illustrate your point.

Accepted Answer

The ownership and title to goods are bas

Question 19

Philip lives in a small apartment in Toronto along with his elderly mother.He has a phone in his name.Although she is ill and requires regular care from Philip,he is routinely distracted by telemarketing communications from one particular business attempting to sell him travel packages.Philip asked them not to call back but the telephone communications continued.He decided to look into the matter and found that a recently established "National Do Not Call List" had been established by the Canadian Radio-television and Telecommunications Commission.Philip proceeded to register his number.As a result,telemarketers must not call to solicit.Which of the following is not an exception permitting telemarketers to call Philip's number?

Accepted Answer

A) The telemarketer is a registered charity. 
B) The call is made on behalf of a political party. 
C) The call is made by a business with whom Philip has an existing relationship. 
D) The telemarketer directs the telephone inquiries to Philip's mother. 
E) The telemarketer calls more than three years after the initial registration. 
A) The telemarketer is a registered charity. 
B) The call is made on behalf of a political party. 
C) The call is made by a business with whom Philip has an existing relationship. 
D) The telemarketer directs the telephone inquiries to Philip's mother. 
E) The telemarketer calls more than three years after the initial registration.

Question 20

Albert sells collectibles.He received a telephone call from Penelope White,who was looking for cranberry glass.Albert advised her that he had several sets of cranberry glass.After describing them to her over the phone,she agreed to purchase them.He shipped them to Penelope and when they arrived she refused to accept them.What remedies,if any,is Albert entitled to?

Accepted Answer

Albert will be entitled to bring an acti

Exam 14: Sale of Goods and Consumer Contracts

The Sale of Goods Act makes it possible for a seller to exempt itself from the implied conditions by making the exclusions express terms of the contract.

John purchases a 2009 Pontiac automobile from Car Dealers Inc.Within three weeks,the car's transmission fails to work.Assuming that the car was not warranted against such an event,under the Sale of Goods Act,the failure of the transmission would amount to a breach of the implied condition of

The implied conditions in the Sale of Goods Act apply to any and all sales of goods.

A,a thief,steals 100 stereo amplifiers from B's warehouse and takes them to a flea market,where he sets up a stand that makes it appear that his business is selling stereo equipment.B finds out that A has sold an amplifier to C,an amplifier dealer.In this case,under the Ontario Sale of Goods Act

Legislation governing consumer contracts does not ban the use of standard form contracts.Rather,it controls the use of standard form contracts employing various techniques including all of the following EXCEPT

What type of a sale of goods is subject to an implied condition that the goods shall be of merchantable quality,and under what circumstances is that implied condition avoided by the seller?

When a buyer relies on a catalogue and a sample in placing an order,the Sale of Goods Act implies

A sanction intended to compel acceptance upon delivery of goods is called a

Describe four common law remedies a buyer may have against a seller of goods.

"The sole warranty between the seller and buyer is the warranty set out in this contract." This written statement is an example of

Which of the following is NOT a remedy of the buyer?

Discuss the difference between title to goods,ownership,and possession of goods,using a consignment agreement to illustrate your point.

Law, society, and Business

The Machinery of Justice

Government Regulation of Business

The Law of Torts

Professional Liability: the Legal Challenges

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration and Intention

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Set Aside: Mistake and Misrepresentation

Writing and Interpretation

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

Breach of Contract and Its Remedies

Bailment and Leasing

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

Corporate Governance: the Internal Affairs of Corporations

Corporate Governance: External Responsibilities

Secured Transactions

Creditors Rights

International Business Transactions

Electronic Commerce

Privacy

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